close solutoin list

Scenario 2 Lisa Jennings thought that at long last, her company, Assurance Technologies, was about to win a major contract from Sealgood Instruments. Sealgood, a maker of precision measuring instruments, was sourcing a large contract for component subassemblies. The contract that Assurance Technologies was bidding on was worth at least $2.5 million annually, a significant amount given Assurance’s annual sales of $30 million. Her team had spent hundreds of hours preparing the quotation and felt they could meet Sealgood’s requirements in quality, cost, delivery, part standardization, and simplification. In fact, Lisa had never been more confident about a quote meeting the demanding requirements of a potential customer. Troy Smyrna, the buyer at Sealgood Instruments responsible for awarding this contract, called Lisa and asked to meet with her at his office to discuss the specifics of the contract. When she arrived, Lisa soon realized that the conversation was not going exactly as she had expected. Troy informed Lisa that Assurance Technologies had indeed prepared a solid quotation for the contract. However, when he visited Assurance’s facility earlier on a prequalifying visit, he was disturbed to see a significant amount of a competitor’s product being used by Assurance. Troy explained his uneasiness with releasing part plans and designs to a company that clearly had involvement with a competitor. When Lisa asked what Assurance could do to minimize his uneasiness, Troy replied that he would be more comfortable if Assurance no longer used the competitor’s equipment and used Sealgood’s equipment instead. Lisa responded that this would mean replacing several hundred thousand dollars worth of equipment. Unfazed, Troy simply asked her whether or not she wanted the business. Lisa responded that she needed some time to think and that she would get back to Troy in a day or so. Do you think the buyer at Sealgood Instruments, Troy Smyrna, is practicing unethical behavior? First, what is the term for this behavior, and second, defend why you think it is ethical or unethical behavior.

BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681
BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681

Solutions

Chapter
Section
Chapter C, Problem 5.1SB
Textbook Problem

Scenario 2

Lisa Jennings thought that at long last, her company, Assurance Technologies, was about to win a major contract from Sealgood Instruments. Sealgood, a maker of precision measuring instruments, was sourcing a large contract for component subassemblies. The contract that Assurance Technologies was bidding on was worth at least $2.5 million annually, a significant amount given Assurance’s annual sales of $30 million. Her team had spent hundreds of hours preparing the quotation and felt they could meet Sealgood’s requirements in quality, cost, delivery, part standardization, and simplification. In fact, Lisa had never been more confident about a quote meeting the demanding requirements of a potential customer.

Troy Smyrna, the buyer at Sealgood Instruments responsible for awarding this contract, called Lisa and asked to meet with her at his office to discuss the specifics of the contract. When she arrived, Lisa soon realized that the conversation was not going exactly as she had expected. Troy informed Lisa that Assurance Technologies had indeed prepared a solid quotation for the contract. However, when he visited Assurance’s facility earlier on a prequalifying visit, he was disturbed to see a significant amount of a competitor’s product being used by Assurance. Troy explained his uneasiness with releasing part plans and designs to a company that clearly had involvement with a competitor. When Lisa asked what Assurance could do to minimize his uneasiness, Troy replied that he would be more comfortable if Assurance no longer used the competitor’s equipment and used Sealgood’s equipment instead. Lisa responded that this would mean replacing several hundred thousand dollars worth of equipment. Unfazed, Troy simply asked her whether or not she wanted the business. Lisa responded that she needed some time to think and that she would get back to Troy in a day or so.

Do you think the buyer at Sealgood Instruments, Troy Smyrna, is practicing unethical behavior? First, what is the term for this behavior, and second, defend why you think it is ethical or unethical behavior.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter C Solutions

Purchasing and Supply Chain Management
Show all chapter solutions
Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - The Global Sourcing Wire Harness Decision Sheila...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Managing Supplier Quality: Integrated Devices Bill...Ch. C - Purchasing Ethics Scenario 1 Bryan Janz was just...Ch. C - Purchasing Ethics Scenario 1 Bryan Janz was just...Ch. C - Purchasing Ethics Scenario 1 Bryan Janz was just...Ch. C - Purchasing Ethics Scenario 1 Bryan Janz was just...Ch. C - Scenario 2 Lisa Jennings thought that at long...Ch. C - Scenario 2 Lisa Jennings thought that at long...Ch. C - Scenario 3 Ben Gibson, the purchasing manager at...Ch. C - Scenario 3 Ben Gibson, the purchasing manager at...Ch. C - Scenario 4 Sharon Gillespie, a new buyer at...Ch. C - Scenario 4 Sharon Gillespie, a new buyer at...Ch. C - Scenario 4 Sharon Gillespie, a new buyer at...Ch. C - Insourcing/Outsourcing: The FlexCon Piston...Ch. C - Insourcing/Outsourcing: The FlexCon Piston...Ch. C - Insourcing/Outsourcing: The FlexCon Piston...Ch. C - Insourcing/Outsourcing: The FlexCon Piston...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What is a letter of credit? A bill of lading? A draft?

Foundations of Business (MindTap Course List)

Define the term marketing

MKTG 12:STUDENT ED.-TEXT

RISK AND RETURN Assume that you recently graduated with a major in finance. You just landed a job as a financia...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Draw a U-shaped, short-run ATC curve for a firm. Construct the accompanying MC and AVC curves.

Microeconomics: Private and Public Choice (MindTap Course List)